"Smart Strategies, Giving Speed to your Growth Trajectory"

Vertical Farming Market Size, Share & Industry Analysis, By Type (Hydroponics, Aeroponics, and Aquaponics), By Structure (Building-Based Vertical Farm and Shipping-Container Vertical Farm), By Component (Lighting System, Irrigation & Fertigation System, Climate Control, Sensors, and Others), and Regional Forecast, 2024-2032

Last Updated: April 29, 2024 | Format: PDF | Report ID: FBI101958



Play Audio Listen to Audio Version

The global vertical farming market size was valued at USD 5.05 billion in 2023 and is projected to grow from USD 6.22 billion in 2024 to USD 40.45 billion by 2032 at a CAGR of 26.4% during the forecast period (2024-2032). North America accounted for a market value of USD 1.98 billion in 2023. In the market study, we have considered vertical farming applications, techniques, and components offered by market players such as Aerofarm's Aeroponics vertical farms, BrightFarms’s Hydroponic indoor farming, and Freight Farms, Inc’s Greener’S shipping container farm. Similarly, Plenty Unlimited Inc. vertical farms and Urban Crop Solutions provide end-to-end hydroponic farming solutions and services such as plat factories, LED lighting, and support services.

Low water usage, enhanced efficiency, food security, and resistance to weather and environmental conservation are expected to increase market growth worldwide. Also, the COVID-19 pandemic highlighted the importance of local food and urban farming practices, such as indoor and vertical farms. Due to a large population across urban areas, the pandemic disrupted the urban food system, such as its retail sales and distribution. However, this period also accelerated the need for secure and healthy food. Vertical farms gained traction amid the pandemic due to increased demand for organically grown foods.

  • For instance, in June 2020, Singapore accelerated its plans to deploy rooftop farms to improve food security and increase farming capacity. Most rooftop farms are widely adopted vertical farms, such as aquaponics and hydroponics to save space. These active initiatives by the countries are predicted to expand the market size in the coming years.

Furthermore, the venture capital investment has increased owing to the increased demand for sustainable and innovative agriculture practices to reduce waste, increase yield, and eliminate threats of diseases and pests.

Vertical Farming Market Trends

Robotics and Artificial Intelligence to Drive Market towards Higher Growth Trajectory

The integration of robotics and artificial intelligence across vertical farms enables tracking the development of plants from irrigation to harvesting. Robots help to move farms vertically from one place to another. Artificial intelligence-powered tools and applications help manage the temperature, light, and water required for plants.

The vertical farming industry is turning towards robotics and artificial intelligence technologies to improve crop yields, monitor soil conditions, control pests, organize farm data, and improve agriculture-related tasks. Big data analytics, the Internet of Things, robotics, and smart and connected devices provide real-time information to vertical farm producers. The rising technological advancements, including analytics and automation, enable effective management of crop production across farms. Market players are leveraging these technologies to improve production, crop health and

For example, Plenty’s vertical farm in San Francisco leverages IoT, robotics, big data, climate control, LED lighting control systems, and AI technology to produce tasty and healthy food. The company implemented AI-powered robots helps to control temperature, watering, and lighting.

Big data analytics and IoT technology constantly analyze the temperature and climate change across the facility.

For example, Bimantis, an India-based company, established a farming system, The GreenSage, integrated with IoT-powered solutions. The solution helps to monitor and control light, plant growth level, nutrients, and air quality automatically.

Thus, the integration of advanced technologies, including robotics, AI, Analytics, and Internet of Things (IoT), is anticipated to surge the demand for vertical farms in coming years.

Request a Free sample to learn more about this report.

Vertical Farming Market Growth Factors

Declining Arable Land and Growing Water Crisis to Drive Adoption of Vertical Farms

The global population continues to grow and due to this, the availability of arable land is decreasing. To overcome this challenge, vertical farming is gaining popularity as it offers a solution by utilizing unused urban spaces and transforming them into productive agriculture areas.

The food and agriculture industries are constantly concerned about the growing food demand owing to the declining stock of land resources for agriculture across the globe. Industries are facing massive challenges in feeding this rapidly increasing global population.

Similarly, the world is quickly shifting towards a water crisis. Traditional farming consumes more water, and this leads to water scarcity. To overcome this issue, techniques, such as hydroponics are used, which require 90% less water than the traditional methods for growing crops. Through regulated environmental conditions, vertical farming technology enhances the possibility of water being retained. Through evaporation, less water is wasted in the atmosphere, and farmers are under less pressure to constantly source freshwater supplies.

Thus, all these factors force us to adopt major traditional agriculture alternatives. Vertical farms have emerged as a resourceful alternative for growing high-quantity and quality crops. Vertical farms can be used for producing selective food plants while reducing the load from traditional agriculture. Similarly, the system uses controlled transpiration, which is expected to lower water stress.

The vertical farming market analysis also considers the growing water crisis across countries, including Israel, Qatar, India, Jordan, Saudi Arabia, and others are likely to increase vertical farms' adoption. The increasing water crisis and declining arable land for traditional practices are anticipated to fuel the demand for vertical farms.


High Cost of Initial Investment to Challenge Market Potential

Space, light, water, carbon dioxide, and land in conventional farming are all readily available. However, all of these variables necessitate a high supply cost for vertical farms. Artificial light is used in vertical farms. The expense of air cooling and heating to maintain the proper temperature, precision monitoring, and other relevant software is also included.

Similarly, specific structures must be erected to distribute nutrients and provide a platform for crop growth. As a result, maintenance and resource supply in vertical farms are quite expensive.

Vertical Farming Market Segmentation Analysis

By Type Analysis

Rising Demand for Healthy and Safe Food to Fuel Hydroponics Growth

Based on type, the market is divided into hydroponics, aeroponics, and aquaponics.

The hydroponics segment dominated the market in 2023 and is anticipated to showcase remarkable growth during the forecast period owing to increased demand for healthy and safe food. Hydroponic crops are grown on a practice where water-based nutrient solutions are used instead of soil. These crops are easier to control and offer more profits. This turns them into a weapon to fight against hunger and improve food safety. Crops that use the hydroponic technique grow 30-50% faster than the crops grown in soil.

The aeroponics segment is estimated to gain traction in the coming years as aeroponics has proven to be a boon in situations where relentless soil usage has resulted in soil erosion and led to the shortage of farming land. Aeroponics relies on air and needs almost 95% less water and space for farming purposes.

By Structure Analysis

Shipping Container-based Structures to Gain Traction Attributed to their Transportability

Based on structure, the market is bifurcated into a shipping container- and building-based.

The demand for building-based vertical farm structures is growing as new buildings and construction projects across the cities are used to deploy farms. Further, abandoned buildings across cities are widely used to develop vertical farms. For example, Chicago constructed a vertical farm, “The Plant,” in an old pork-packing plant. Similarly, using NASA's Data-based model, Bowery Farming developed urban vertical farms into existing structures, including unused warehouses.

The shipping containers are adopted widely for developing indoor vertical farms. Several companies have refurbished shipping containers into vertical farms integrated with drip irrigation systems, LED lights, and vertically stacked shelves to grow various plants. These containers are integrated with a growth management system that monitors and controls all systems remotely using a computer or smartphone. This is projected to bode well for segmental growth in the coming years.

To know how our report can help streamline your business, Speak to Analyst

By Component Analysis

Climate Control Capabilities of LED Lightening Systems to Fuel Demand for Lightening Systems

Based on the component, the market is categorized into the lighting system, irrigation and fertigation system, climate control, sensors, and others.

The lighting systems are expected to showcase significant growth in the coming years. The demand for LED lighting systems to reduce operational costs and minimize power consumption is increasing across vertical farms. LED lighting systems generate low heat than conventional light resources, making LED lighting ideal for vertical farms.

The shift in consumer demand for unseasonal food drives the demand for climate control components across vertical farms. Climate control components help to monitor the climate and control lights and humidity. The advanced climate control systems can be managed from mobile or computer, which is expected to drive the growth of the hydroponics components.

The sensors gain traction owing to the increased adoption of advanced technologies such as artificial intelligence, the internet of things, and big data analytics across vertical farms. Big data analytics helps to understand and monitor crop health through sensor data.


By region, the market has been analyzed across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America Vertical Farming Market Size, 2023 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

North America holds the largest vertical farming market share owing to the presence of many vertical farms across the U.S. and the adoption of robotics and automation technologies across the farms. The rising demand for organic, fresh, and rich-quality food fuels the development of vertical farms in the U.S. and Canada.

To know how our report can help streamline your business, Speak to Analyst

Further, the usage of cannabis is legalized in the U.S. and Canada. The vertical farms are suitable for growing cannabis, which is expected to fuel the vertical farming market growth.

Europe is anticipated to showcase significant growth in the coming years. European Countries such as the U.K., Germany, France, Italy, Spain, Russia, Benelux, and Nordics are projected to drive the development of vertical farms. The growing investment by agri-tech startups to expand the products and business presence worldwide. For instance, in December 2021, Germany-based vertical farming startup, Infarm, raised USD 200 million to accelerate the products and business expansion. The company leverages cloud technology to manage the cultivation of plants near to consumers to minimize the environmental impact. The rising investment by the market players boosts the market growth across the region.

The Asia Pacific is likely to showcase remarkable growth during the projected period. The rise in the decline of arable land for agriculture in countries including China, India, and some Asian countries is anticipated to boost the demand for this innovative farming system. The water scarcity and increased food demand for the vast population of India, China, and Japan are expected to create new market opportunities across the region.

The farmers have faced a lack of rain, drought, climate change, insufficient irrigation systems, financial challenges, crop failure, increased dependency on chemical fertilizers, and limited crop varieties for years across Asia. This is expected to foster the need for innovative farming techniques in the coming years. For instance, in January 2022, the Union Minister of Road Transport and Highways of India inaugurated India's biggest vertical farm project. The project aims to offer the benefits of soil-based vertical farms to Indian farmers. These factors drive the market towards a growth trajectory.

The Middle East and Africa exhibit remarkable growth of the market during the forecast period due to less arable land availability and rising water scarcity. The growing food and agri-tech initiatives across the United Arab Emirates, South Africa, Saudi Arabia, and other countries drive market growth.

Further, the growing research and development activities by prominent market players boost the development of vertical farms across the region. For instance, in July 2021, Aerofarms started constructing the United Arab Emirates-based subsidiary “AeroFarms AgX LTD” on research and development in Abu Dhabi. The new center focuses on developments in a controlled environment and indoor vertical agriculture farming. This is driving the region's adoption of innovative and advanced farming solutions.

South America is expected to grow at a moderate rate. There is a huge loss of fruits and vegetables produced using traditional farming in Mexico during transportation, storage, and processing. The implementation of vertical farms will help address the challenges faced by Mexican farmers. Similarly, vertical farms to gain traction during the forecast period to reduce the usage of pesticides and chemicals and improve food security across Brazil, Argentina, and other South American countries.

List of Key Companies in Vertical Farming Market

Key Players Are Highly Investing in Building New Farms Globally

The prominent players in the market, such as Signify, Freight Farm, AeroFarms, BrightFarms, Heliospectra AB, and Illumitex Inc., are focusing on business expansion through strategic partnerships and collaboration with other organizations. These players are investing in globalizing the vertical farming concept by building new farms across countries. The prominent players are also investing in research and development to reduce the additional charges of the system. 

  • January 2022 – Plenty Unlimited Inc. secured USD 400 million in a Series E funding round. The funding will support Plenty’s growth, including the proliferation of technology platforms to directly sell crop farms to partners.

List of Key Companies Profiled:


  • February 2024 – Urban Crop Solutions launched an e-shop for customers for indoor farming installations. The e-shop can connect a customer to a sales person, and the team would assist customers in their purchases and other queries.

  • November 2023 – Urban Crop Solutions collaborated with BASF for developing eco- friendly and efficient solutions.

  • March 2023 – UP Vertical Farms developed unique solutions to the challenges handled by traditional farming methods. The company launched a high-density contactless vertical farm to be the most sustainable vertical farm by 2023. The solution enables significantly faster production, higher yields, and better quality control with minimal environmental impact.

  • February 2023 – AeroFarms unveiled its new research & development farm in Abu Dhabi with the support of the Abu Dhabi Investment Office.

  • October 2022 – AeroFarms decided to expand nationally from the Northeast region to all-natural food markets after noticing an increased demand for specialty vegetables. AeroFarms becomes the first indoor farming company to join the Whole Foods Market Global Planogram. 

  • October 2022 – Singapore-based agtech company Singrow launched Bloom, a consumer concept brand, with plans to expand in Asia and beyond. The company plans to expand its firm partner presence beyond China, Singapore, and Indonesia to Thailand, the Philippines, Hong Kong, and the Middle East. 

  • December 2021 - Dream Harvest Farming Company, a Houston-based vertical farming company, secured USD 50 million in funding from Orion Energy Partners. Through this funding, the company aims to scale up production and construct a 100,000 sq. ft indoor vertical farming facility. Further, the company aims to scale its operations and serve additional retailers.

  • October 2020 – BrightFarms secured USD 100 million to expand its indoor farming. The funding round was led by Cox Enterprises. The company aims to leverage this funding to invest in its existing and retail farms. Further, the company aims to expand its presence across the U.S.


An Infographic Representation of Vertical Farming Market

To get information on various segments, share your queries with us

The market research report highlights leading regions worldwide to offer a better understanding to the user. Furthermore, the market report provides insights into the vertical farming market outlook with the latest industry growth trends and analyzes technologies deployed at a rapid pace at the global level. It further offers some drivers and restraints, helping the reader gain in-depth knowledge about the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 26.4% from 2024 to 2032


Value (USD Billion)


By Type

  • Hydroponics

  • Aeroponics

  • Aquaponics

By Structure

  • Building-Based Vertical Farms

  • Shipping-Container Vertical Farms

By Component

  • Lighting System

  • Irrigation and Fertigation System

  • Climate Control

  • Sensors

  • Others (HVAC Systems, Building materials, etc.)

By Region

  • North America (By Type, By Structure, By Component, and by Country)

    • U.S. (By Structure)

    • Canada (By Structure)

    • Mexico (By Structure)

  • Europe (By Type, By Structure, By Component, and by Country)

    • U.K. (By Structure)

    • Germany (By Structure)

    • France (By Structure)

    • Italy (By Structure)

    • Spain (By Structure)

    • Russia (By Structure)

    • Benelux (By Structure)

    • Nordics (By Structure)

    • Rest of Europe

  • Asia Pacific (By Type, By Structure, By Component, and by Country)

    • China (By Structure)

    • Japan (By Structure)

    • India (By Structure)

    • South Korea (By Structure)

    • ASEAN (By Structure)

    • Oceania (By Structure)

    • Rest of Asia Pacific

  • The Middle East & Africa (By Type, By Structure, By Component, and by Country)

    • Turkey (By Structure)

    • Israel (By Structure)

    • GCC (By Structure)

    • South Africa (By Structure)

    • North Africa (By Structure)

    • Rest of the Middle East & Africa

  • South America (By Type, By Structure, By Component, and by Country)

    • Brazil (By Structure)

    • Argentina (By Structure)

    • Rest of South America

Frequently Asked Questions

According to Fortune Business Insights, the global market size will be valued at USD 40.45 billion by 2032.

In 2023, the market value stood at USD 5.05 billion.

The market is projected to record a CAGR of 26.4% during the forecast period.

The hydroponics segment is expected to be the leading segment in the market.

The decline of arable land and growing water scarcity are the key factors driving the market growth.

AeroFarms, Signify Holding, Everlight Electronics Co. Ltd., Heliospectra AB, and Plenty Unlimited Inc. are the top players in the market.

The North American region is expected to hold the highest market share.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2019-2032
  • 2023
  • 2019-2022
  • 140

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.